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When you’re buying a home, you’re not just choosing a house; you’re also choosing a lender. Who you decide to get a mortgage loan with really matters, not only because of the rates and terms they offer, but also because of their loan servicing. There can be distinct advantages that come with choosing a lender who offers locally serviced loans as opposed to those who sell their loans off to larger, national companies.

What does “locally serviced” truly mean?

A locally serviced loan is a mortgage that remains with your chosen lender for the life of the loan. The same lender will always handle your mortgage servicing, like your payments and escrow accounts. In contrast, if you go with a lender who doesn’t offer to service their own loans, your mortgage may be sold multiple times to different companies, meaning the loan servicer you start with may not be the one you end up with at the end of your term.

When you use a lender that offers locally serviced loans, that means no surprises, no shuffling between companies, and no confusion about who to call if you have questions or concerns about your mortgage. You’ll also be using a lender that’s invested in your community’s success.

Mortgage Lender vs. Mortgage Servicer

The terms “mortgage lenders” and “mortgage servicers” are often incorrectly used interchangeably, but there are distinct differences between them. It’s important to understand the difference before you apply for a mortgage.

Mortgage lenders create and fund home loans, often called mortgage origination. They’re who you get a loan from to buy your home, and they also typically offer refinancing services. The lender sets the mortgage terms, like interest rates, payment schedules, and the length of the loan. Then, after closing, lenders often transfer the loan to a servicing company.

Mortgage servicers are essentially the day-to-day operators of your mortgage. They get your loan from a lender after closing and are in charge of processing payments, tracking your loan balances, managing escrow accounts, and generating your annual tax forms.

Some financial institutions, Ascend Federal Credit Union included, do both mortgage origination and servicing. That’s why your loan stays with us for its entire term* — we not only lend you the money for your mortgage, but we also handle the day-to-day actions after you close.

Local Service from a Trusted Source

The main benefit of choosing a locally serviced loan from a lender in your area is obvious: the local connection. When you choose a local lender for your mortgage, you gain the support of a team that lives and works in your area. They understand the local housing market and can provide guidance tailored to your needs.

Having a local mortgage team not only helps when you have questions or concerns about your loan, but they also help make a seamless mortgage process. You’ll have a local partner all the way from the application process to closing, and after you move into your home.

Why it Matters

Choosing a locally serviced loan means more stability, more personalized service, and more peace of mind. Instead of being passed from company to company, you can count on your local mortgage team to be with you every step of the way.

Trevor Williams is Ascend’s Chief Lending Officer. Ascend is federally insured by NCUA. Equal Housing Lender. NMLS #451452.

*Excludes FHA and VA loans